Developers are trying to sell property in IPO style.

By Abhay Harish Shah , Realty Quarter

Real estate market is the diciest market where prices are stagnated in the last few years. Because of this reason, the real estate market is been destroyed. Many developers/builders are trying to cope up with various sales and marketing strategies.

Inviting Expression of Interest (EOI) to sell apartments in an IPO-like way is one such technique which could be named as market disruption. This methodology has been connected rather specifically in the Indian real estate market but has met with progress.

Just the reputed developers have tried different things with this technique however as not every person can stand to open up to the world and welcome EOIs provided that the venture is under-bought in, it exposes the builder in the open market. Besides, selling a housing venture through the imaginative strategy for semi-book building additionally requires that builders have certainty about the achievement of their undertaking, as the value revelation process is driven by major ‘demand-supply’ measurements.

There are many benefits for Homebuyers by purchasing property in an IPO style.

1) Flats are allocated on a first-come-first-serve basis and consequently, the purchaser has a higher likelihood of getting his/her decision of floor as well as a view with no PLC (special area charges).

2) A purchaser enters the undertaking at a sensibly lower value point.

3) Regardless of whether somebody puts an offer that is higher than the last value, the individual should pay just the last cost and not his offer cost.

4) On the off chance that the IPO is effective, the purchaser is guaranteed that the project will be conveyed, as developers can’t redirect the cash under the RERA Act.

5) If the IPO is not successful, then the buyer will be exposed with very minimum loss.